AMD 2002 Annual Report Download - page 14

Table of Contents
We also have foundry arrangements for the production of certain of our products.
Research and development is conducted at our SDC, a 42,000 square-foot facility located in Sunnyvale, California. In addition, some development work
takes place at our Fab 25 and Fab 30 manufacturing facilities. In 2003, we expect that silicon processing associated with research and development for logic
process technologies will move to IBM’s New York facility. Research and development with respect to our non-volatile memory technology used for
manufacturing our Flash memory products will continue to be conducted at our SDC.
Our current assembly and test facilities are described in the chart set forth below:
Facility Location
Approximate
Assembly & Test
Square Footage Activity
Penang, Malaysia 310,000 Assembly & Test
Bangkok, Thailand 78,000 Assembly & Test
Singapore 234,000 Test
Suzhou, China 30,250 Assembly & Test
As set forth above, nearly all product assembly and final testing of our products are performed at our facilities in Penang, Malaysia; Bangkok, Thailand;
Suzhou, China and Singapore; or by subcontractors in the United States and Asia. We also depend on foreign foundry suppliers and joint ventures for the
manufacture of a portion of our finished silicon wafers and have international sales operations. The political and economic risks associated with our operations in
foreign countries include:
• expropriation;
• changes in a specific country’s or region’s political or economic conditions;
• trade protection measures and import or export licensing requirements;
• difficulty in protecting our intellectual property;
• changes in foreign currency exchange rates and currency controls;
• changes in freight and interest rates;
• disruption in air transportation between the United States and our overseas facilities; and
• loss or modification of exemptions for taxes and tariffs.
Certain Material Agreements. Descriptions of certain material contractual relationships we have relating to FASL and Fab 30 are set forth on page 26
below. A description of our contractual relationship with IBM is set forth on page 8 above.
Marketing and Sales
Our products are marketed and sold under the AMD trademark. We employ a direct sales force through our principal facilities in Sunnyvale, California,
and field sales offices throughout the United States and abroad, primarily Europe and Asia Pacific. We also sell our products through third-party distributors and
independent representatives in both domestic and international markets pursuant to nonexclusive agreements. The distributors also sell products manufactured by
our competitors. No OEM customer accounted for more than ten percent of net sales in 2002 and 2001. In 2000, one of our OEMs, Compaq, accounted for
approximately 11 percent of net sales. No distributor accounted for ten percent or more of net sales in 2002, 2001 and 2000.
We intend to build upon our position as a global supplier of integrated circuits for the personal and networked computer and communications markets by
expanding our focus to include emerging markets such as China, India, Russia and Latin America. In particular, in 2002, we focused on expanding our
participation in
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Source: ADVANCED MICRO DEVIC, 10-K, March 14, 2003